Ascott Residence Trust divests stake in Somerset West Lake Hanoi property

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Ascott Residence Trust has divested its entire interest in The Ascott (Vietnam) Investments, which indirectly holds a stake in the Somerset West Lake Hanoi serviced residence property, for US$10 million, or around S$13.7 million, the REIT said in a filing to SGX Thursday.

“The divestment is in line with Ascott REIT’s active asset management strategy to regularly evaluate and proactively reconstitute Ascott REIT’s portfolio to optimise returns for unitholders, by recycling capital to invest in higher-yielding properties,” the REIT said in the filing.

The buyer is an unrelated third party, Ascott Residence Trust said.

Under the deal, US$5.2 million, or around S$7.2 million, of shareholder’s loans will be transferred to the buyer, and the amount payable for acquisition of The Ascott (Vietnam) Investments is US$4.8 million, or around S$6.6 million, the REIT said.

The Ascott (Vietnam) Investments, which had been wholly owned by the REIT, owns 70 percent of Vietnamese project company West Lake Development Co., which in turn owns all of Somerset West Lake Hanoi, the filing said.

The remaining 30 percent of West Lake Development Co. is owned by Hanoi Housing Development and Investment Corp., the filing said.

Following the deal’s completion, The Ascott (Vietnam) Investments and West Lake Development Co. have ceased to be subsidiaries of Ascott REIT, the filing said.

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